US President Donald Trump criticized Federal Reserve Chair Jerome Powell for maintaining high interest rates, accusing him of harming the US economy and national security. Trump expressed frustration that Powell did not lower interest rates despite what he perceived as no valid reason to keep them high. He argued that the current interest rates were imposing significant unnecessary costs on the government.
Trump linked his argument to US tariff policies, stating that the influx of money into the country due to tariffs should warrant the lowest interest rates globally. He emphasized that tariffs had contributed to the US economy’s strength and increased government revenues. Trump highlighted that while tariffs generated billions for the US, many countries still maintained trade surpluses.
The President urged the Fed to promptly reduce interest rates, emphasizing that tariffs had played a crucial role in restoring US power. Trump believed that the US, given its economic strength, should have lower interest rates than any other nation. His comments followed Powell’s announcement that the Federal Reserve would maintain the benchmark federal funds rate within a specific range.
Powell acknowledged that inflation had eased from its recent highs but remained somewhat elevated. He noted that goods inflation had been influenced by tariffs, while services inflation continued to decline. Powell emphasized that monetary policy decisions would be made meeting by meeting and defended the central bank’s independence from political influence.
